this seems rather counter-productive, wouldn't a model with less cybersecurity capabilities be more likely to produce insecure code? Not to mention, Chinese models don't have these restrictions and can be used to exploit said unsecure code.

I supposed I shouldn't be surprised at how the trump admin is approaching AI regulation, counter-productive is really all they do

As contradictory as it sounds, they (Anthropic) are probably trying to dance the fine line where its public models can write secure code but cannot exploit insecure code.